Question ID :
Implication of Ind AS 115 for real estate developers
Wef FY 18-19, Ind AS 115 has replaced Ind AS 18 and 11. Most of the listed entities in real estate sector has shifted to product completion method instead of percentage completion method in respect of incomplete projects, as noted from their quarterly results. Most of them have recognised negative impact on their net worth as at 1.4.18.
For FY 2018-19, real estate companies would be recognising revenue based on product completion instead of percentage completion. My query is, for income tax purpose, would such entities be required to prepare a separate books of account i.e. as per Percentage completion since, ICDS on Construction contracts permits only percentage completion or they can continue to use accounts prepared as per new revenue recognition standard?
Apr 24 2019 12:00AM